Syndicated post from InmanNews.
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The debate over listing ownership and distribution reached a fever-pitch this week when Zillow debuted its pre-marketing platform, aptly named Zillow Preview. Texas-based franchisor Keller Williams was the first in a cohort of brokerages to roll the product out to its agents, with KW Executive Chairman of the Board and Co-Founder Gary Keller saying it was about honoring seller choice while maintaining market integrity.
“If this approach ultimately helps sellers build early interest, helps buyers discover homes earlier, and respects the role of the listing professional, then it represents a constructive step forward,” he said of Zillow’s pre-marketing system in an Inman op-ed. “And I, for one, welcome that.”
Jason Abrams | Credit: KWRI
KW Head of Industry and Learning Jason Abrams said the firm’s affiliates have shown early excitement about the option to market coming-soon listings on Zillow, even cutting through some difficult feelings agents have about the portal’s place in the industry.
“I think views around Zillow vary. But what doesn’t vary is everybody liking being able to make their own choices,” he said. “And I think the reason that this has been overwhelmingly positively received is because we’re leaving it up to our local market center owners to decide with their agents if this program is right for them. And then they’re leaving it to each real estate agent and their seller to decide whether Preview is right for their bespoke marketing plan.
“And nobody should get upset by having more choices,” he added. “I’ve received texts and emails from real estate agents not at Keller Williams saying, ‘Oh, my gosh, we need that program. How can we get involved? Do we have to join Keller? How does it work?’ And when that starts happening, I know we’re on the right track.”
The following conversation has been edited for length and clarity.
Inman: Let’s jump into it. You guys shook the industry this week with the Zillow Preview partnership. And one of the first questions that came to mind was why your team didn’t build a proprietary platform similar to Howard Hanna’s HannaList — KW certainly has the resources to do so. What made the partnership with Zillow the better path?
Abrams: Well, thank you for asking. I think if you get to the point where you — and your seller — believe that marketing a listing in preview status makes sense, the natural next question then is, ‘Why are you doing it?’ The reason you’d be doing it is to draw as much attention as you can to the property before it goes live. And then you’d ask, ‘How would I do that?’
And the answer is going to the place that has the most consumers looking. When you look at Zillow, you’re talking about 220 million visitors on a monthly basis. So, I think it’s cool that some other firms are partnered with the No. 3, No. 4, or No. 5 [portal] or all three added together. But it’s so much cooler when you can partner with the No. 1 and drive the most eyeballs to the property.
Zillow worked on Preview for about six months. Where in that process did KW become involved? What questions did your team ask about the platform and how it worked? Especially about making sure it complied with local MLS rules.
I don’t think there’s anything new about preview or coming-soon listings. If you look back, Zillow attempted to do that in 2014. Real estate agents have been doing it since the dawn of the MLS in the 90s, and even prior to that.
We’ve always had our eyes on every piece of marketing that a real estate agent can do. As the conversation got more intense around the industry, we may have perked our ears up, and we asked a simple question: ‘If a real estate agent wants to have a preview as part of their marketing package with their seller, what’s the single best way to deliver it while honoring all of the MLS rules?’ I think that’s a slightly different question than some others are asking.
But we believe that if you’re going to be part of a membership to any network, you should abide by that network’s rules. And we’re huge supporters of the MLS and of sellers and real estate agents making choices that are best for their clients. The good news is so is Zillow.
So, Gary [Keller] penned an op-ed for Inman in which he mentioned the Compass-Redfin partnership and said, “The conversation’s no longer about private listings. It’s about how listings are distributed.” With that in mind, what do you think are the main questions that franchisors, brokers, agents, and MLS leaders should be thinking about and asking when it comes to how listings are distributed? Who do you think has the final say?
I think all of these conversations should happen at the local level and include real estate agents and their brokers. And [the answers] should ultimately always be [based] in what’s in the best interest of buyers and sellers. No. 2, if they’re members of MLS, they should be insisting that MLS enforce all its rules equally across all brands. And No. 3, if the MLS is enforcing its rules equally across all brands, have a hand in helping craft those rules that help you best serve your clients.
Hanging on the point about local MLSs, there’s been a lot of conversation about consolidating the system — whether that’s moving to a more compact system of — and I’m throwing out a number proposed at ICNY —25 MLSs or having a national MLS.
How do you think the wave of pre-marketing partnerships will impact this conversation? And how specifically is KW thinking about what the MLS system should look like?
Candidly, I don’t know that that discussion is anything new. You’ve already seen some MLSs that have become regional MLSs. Look at Bright, for example.
And, yes. And I believe that the vast majority of MLSs, as they’re set up, offer sellers maximum flexibility and real estate agents the ability to craft their marketing plan as they see fit when the MLS enforces all of their rules equally across all brands.
And I believe that because the MLS system, as we have it today, works so well, the United States is the envy of the real estate world for housing transparency. Yeah. It’s only when the rules are not equally enforced, and one group decides to stop playing by them, that we have a real problem.
Mhmhm.
And here’s the good news. I rest easy because I believe the MLSs are highly aware of all of this and are working diligently to do the right thing.
Let’s talk about MLSs enforcing all of their rules equally. How would an MLS be held accountable?
Candidly, I’m not sure. Because all these MLSs are local, and because there are so many of them, I think they each have their own accountability systems. But I’d love to think that they’re all in conference rooms working on that as we speak. That makes for a stronger real estate industry.
Thanks for being candid with your answer. Within these local accountability systems, what role do you think brokerages should play?
I think that when you look at most of these MLSs, they have either boards or advisory boards made up of real estate agents and brokers. I think now is an incredible moment for advocacy. There should be a broad range of voices at the table. But all those voices should be after the same thing: a fair and balanced outcome.
Life isn’t fair, but everybody wants to be treated fairly.
Yes, things aren’t always fair. But how does that shape this overarching conversation the industry is having about listings—who owns the data, who gets to decide how it’s shared, etc.? Some people talk about it as a zero-sum game; others see a path for everyone to win. What about you?
I’m so glad you asked. When the consumer wins, we all win. So, having the most visibility around a listing more often than not benefits the homeseller. And being able to see all the available inventory benefits the homebuyer. And when those groups are benefited, real estate agents win as well. I love this system.
As long as the rules that are on the books are enforced equally across all brands, and rules that you’re not going to enforce are removed, and everybody has an equal playing field, it’s the greatest system on the planet, bar none.
